Volkswagen's Chattanooga Plant to Play Key Role in US Strategy

Volkswagen today erected the first wall of the new US factory in Chattanooga, Tennessee which was regarded as a new reason for celebration within the German manufacturer. The Governor of the State of Tennessee, Phil Bredesen, and Professor Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen AG with responsibility for Group production, today inaugurated the new US factory which, according to VW's officials, is the first step made by the German manufacturer towards a successful evolution in the country.

"Our own car production 'made in America' is an important core element of our growth strategy on the U.S. market. That is why today is a major milestone for the Volkswagen Group. The automobile will always be an essential part of the American way of life. Despite the present situation on world markets, the U.S. market will recover and Volkswagen will be ready when that happens," said Prof. Dr. Heizmann.

"Our new plant in Chattanooga sends a clear and strong message for Volkswagen, for the automotive industry and for the state of Tennessee. The United States is a great car nation and we believe in a promising future for Volkswagen here."

The new Chattanooga facility will begin operations in 2011 and will have a maximum capacity of 150,000 units per year. The German company will invest up to $1 billion, with the plant expected to employ around 2,000 workers. Furthermore, the plant will be responsible for the production of a new mid-size sedan for the North American market, with 30 percent of them to be powered by VW's TDI Clean Diesel Technology.

"This is a big day in our company's history. Today, we are putting down new roots in the United States of America. And we are entering a long-term partnership with this community, this state and this country," said Frank Fischer, Chairman and CEO of Volkswagen Group of America Chattanooga Operations, LLC

"You can see our commitment take tangible form in this wall. But that commitment is far more than bricks and mortar. Building a plant and providing jobs doesn't make you a good corporate neighbor. You have to become part of the community. You have to respect and protect the environment. You have to help nurture the next generation. These are the things that Volkswagen is committed to here in Tennessee and throughout America," added Stefan Jacoby, President and CEO of Volkswagen Group of America.